The travel sector has faced a turbulent ride since the onset of the coronavirus pandemic. Despite strong demand for travel, inflation and rising cost of living crises have hit recovery efforts. Many travellers are feeling the pinch and so are delaying or cancelling plans due to financial constraints, leaving many businesses in the industry struggling.
So, what are Travel merchants to do? The emergence of flexible forms of finance could be the solution they are looking for. Let's dig into the details.
Could instalment credit help Travel beat the bookings slump?
As we've seen in the infographic above, 'pay later' services have proved successful in driving sales in retail and beyond, all simply by allowing customers to spread the cost of their purchases.
So why haven't Travel merchants embraced this form of payment? They have been priced out by the high fees levelled by BNPL providers. But, with the introduction of responsible, sustainable instalment credit, the sector could see its recovery taking off even quicker.
As our CEO Martin wrote recently, it looks like the time is ripe for Travel to ride the instalment wave.